Earnings Per Share

What sort of companies have to show the EPS on the income statement?

• All companies

• Publicly traded

What is the basic EPS calculation?

• PAT / Ordinary shares

• PBIT / Capital Employed

Profit 10,000 Non-controlling interests (2000)

Dividends presented in statement of changes in equity On irredeemable preference shares 3000 On ordinary shares 2000

The weighted average number of ordinary shares in issue is 50,000

What is basic EPS?

• 0.1

• 0.2

Profit 10,000 Non-controlling interests (2000)

Dividends presented in statement of changes in equity On irredeemable preference shares 3000 (see note) On ordinary shares 2000

The weighted average number of ordinary shares in issue is 50,000

Note: This figure includes 2,000 in respect of arrears of cumulative dividend not paid in previous years due to lack of distributable profits.

What is basic EPS?

• 0.1

• 0.14

Is the ‘weighted average number of shares’ ever the same as the figure on the SFP at the year end?

• If no additional shares issued

• Never

Will the EPS probably be maintained if there's been a rights or bonus issue?

• Yes

• No

1st January 400 shares in issue 1st April 1 for 4 bonus issue

What is the weighted average number of shares?

• 500

• 900

1st January 1,000 shares in issue

1st October 3 for 4 bonus issue

What is the weighted average number of shares?

• 1,375

• 1,750

1st January 100 shares

1st July 3 for 5 rights issue at £4 (MV £10)

What is the weighted average number of shares?

• 144.5

• 130

1st Jan 400 shares

1st April 1 for 4 @ £5 (MV £8)

What is the weighted average number of shares?

• 483.11

• 608.11